E-Commerce in July of 1997 Term Paper

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com. Kozmo has agreed to pay Starbucks $150 million for utilizing Starbucks 2100 retail outlets for in-store promotion. Some of the other measures are that Kozmo will place drop boxes at Starbucks stores to cater to video returns and Kozmo will also deliver Starbuck's roasted coffee by the pound against orders received over the Internet. It is expected that this agreement will lead to other online ventures that could include hot beverage delivery and the development of new products and services. Kozmo at the moment provides one-hour delivery of videos, books, magazines, meals, snacks, and beverages in the cities of New York, San Francisco, Boston, Seattle and Washington. (Starbucks Tiptoes into E-Commerce with Kozmo Alliance)

Starbucks has launched a new magazine called Joe and the necessary Website for it. An added feature would be the facility of traditional conversation available exclusively across the Starbuck's stores in North America. Excerpts would also be made available online at www.joemag.com.Joe is a joint effort between Starbuck's and Time Inc. Custom Publishing. The Managing Editor of Starbucks believes those general interest magazines and the magazines of ideas and writings could get missed out at the cluttered newsstands. Starbucks provides an excellent opportunity for Joe, as Starbuck customers are usually interested and curious. They make an excellent target audience for a magazine that is aimed at exploring the important, the beautiful, the funny and the provocative.

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Joe is a demonstration of Starbuck's intent to incorporate the Web into its successful brick-and-mortar coffee shops. In the current state of booming Internet economy Starbucks is intent on using this opportunity to forge a new profile beyond that of a coffee retailer. (Starbucks Unveils Web Plans: Starbucks can sell an expensive cup of coffee, but what about a magazine)

There is a need for change of direction in the e-commerce strategy of Starbucks. They possess a website that is rich in content, can be navigated with ease and provides enough information, but do not use it efficiently. To increase offline sales Starbuck's Starbuck should use the website as a tool to create value to its well-entrenched customer experience brand. For this awareness has to be increased for those customers visiting their site through more effective advertising. They also need to increase the customer reliance for the site by sales promotional activity tied to their latest innovation the Starbuck's Card. The new music initiative tied up to starbucks.com would give them added advantage. It would also prove useful in removing any confusion that may exist at the site, by outsourcing brewing sales to another established. (Starbucks.com: eStrategy).....

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